Quotable Value’s (QV) residential house price index for New Zealand rose +6.1% in the year to April, unchanged from March and a +5.5% annual gain in February.

The Government agency believes the property market remains subdued because of uncertainty over changes in property taxation. Prices are still -3.9% below the market peak in late 2007. QV said seasonal factors – Easter and school holidays – had affected the market as might be expected, adding to an already cautious market.

Glenda Whitehead, QV’s valuations manager, said: “There is little urgency, and many people are waiting to see the exact nature of the changes in the May budget before deciding their next move.”

The housing market has been slowly emerging from a sharp downturn during the recession and in April the national average sale price fell -0.5% to NZ$405,235 from March. Whitehead believes the market was mixed with solid sales and prices in some areas, while others have subdued demand and lower prices.

12 month growth in house prices in Auckland, New Zealand’s biggest city, was +9.5% higher, a touch lower than in March, while the capital, Wellington, was up +7.1% from the previous month’s 6.6% gain.